Correlation Between L Abbett and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both L Abbett and Strategic Asset at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining L Abbett and Strategic Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between L Abbett Growth and Strategic Asset Management, you can compare the effects of market volatilities on L Abbett and Strategic Asset and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in L Abbett with a short position of Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and Strategic Asset.
Diversification Opportunities for L Abbett and Strategic Asset
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between LGLSX and Strategic is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Growth and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana and L Abbett is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on L Abbett Growth are associated (or correlated) with Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of L Abbett i.e., L Abbett and Strategic Asset go up and down completely randomly.
Pair Corralation between L Abbett and Strategic Asset
Assuming the 90 days horizon L Abbett Growth is expected to generate 4.55 times more return on investment than Strategic Asset. However, L Abbett is 4.55 times more volatile than Strategic Asset Management. It trades about 0.09 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.18 per unit of risk. If you would invest 5,324 in L Abbett Growth on June 4, 2025 and sell it today you would earn a total of 99.00 from holding L Abbett Growth or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
L Abbett Growth vs. Strategic Asset Management
Performance |
| Timeline |
| L Abbett Growth |
| Strategic Asset Mana |
L Abbett and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and Strategic Asset
The main advantage of trading using opposite L Abbett and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett position performs unexpectedly, Strategic Asset can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Strategic Asset will offset losses from the drop in Strategic Asset's long position.| L Abbett vs. American Funds The | L Abbett vs. American Funds The | L Abbett vs. Growth Fund Of | L Abbett vs. Growth Fund Of |
| Strategic Asset vs. Aew Real Estate | Strategic Asset vs. Cohen Steers Real | Strategic Asset vs. Pender Real Estate | Strategic Asset vs. Nuveen Real Estate |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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